The 336-bed hospital’s lawsuit against the Internal Revenue Service said housestaff should be considered students, making their payments exempt from payroll taxes, an interpretation accepted by some federal appeals courts but rejected by the IRS.
The case covers about 300 current and former residents, working out to an average potential refund for $10,000 per resident.
Read the Seattle Post-Intelligencer’s report about the Virginia Mason Medical Center IRS lawsuit.
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